Micheál Martin (Cork South Central, Fianna Fail)

Life is extremely difficult for small to medium-size employers and those who create jobs. Domestic demand in particular is both poor and sluggish. People in the sector to which I refer require certainty and clarity. There is a growing sense that the sector is under attack as a result of the VAT increase of 2%, the decrease relating to redundancy rebates from 60% to 15% and the proposals on sick leave pay. Most recently, the Minister for Social Protection, Deputy Burton, hinted at the prospect of PRSI increases for both employers and employees. The issues to which I refer are undermining confidence in small to medium-size businesses. They are also undermining their ability to plan with certainty and clarity to the end of this year and for 2013. The small to medium-size sector is the engine room when it comes to employment creation in this country. It is the sector on which we rely most in this regard.

The Minister for Social Protection was quite clear in the speech she delivered at the weekend which related to PRSI and the Social Insurance Fund. She focused on whether benefits should be cut or PRSI rates increased. Her speech was clearly written with a view towards the latter because, as the Minister pointed out, Ireland has the second lowest such rates in the EU. She said, "It is clear to me that something has to give. We can either make a decision ... to reduce the level of benefits ... or else we can ... properly fund these benefits both now and into the future". Does the Taoiseach accept that, as an anonymous Fine Gael Minister articulated to The Irish Times this morning, an increase in PRSI is the same as an increase in income tax? Is such an increase being considered by the Government? Does the Taoiseach also accept that people who are creating jobs, particularly those in the small to medium-size sector, feel they are under consistent attack from the Government in respect of the various matters to which I refer? Above all, does he agree that all of this is leading to a chronic uncertainty which is damaging confidence and the capacity to plan ahead?

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